You know the feeling. Markets get jittery, a bit of bad news rolls through, and suddenly the first stocks to get smashed are the tech names. Growth stocks get dumped, volatility spikes, and everyone starts muttering about “valuation risks.” But for some of Australia’s sharpest investors, these moments aren’t reasons to run — they’re exactly when you start leaning in.

“Yes, [tech] gets trashed. But that’s your opportunity.”

TenCap's Jun Bei Liu has seen this pattern play out plenty of times before. Speaking on Switzer Investing TV this week, she didn’t mince words about what happens to tech stocks during periods of uncertainty.

Why tech stocks go 'on sale' during a downturn

Jun Bei's logic is simple: tech used to be treated as defensive growth. But after years of outperformance, investors now see it as a pocket of easy profits to take when volatility hits. That short-term selling often opens the door for new buying.

“In the old days, when market uncertainty was high, people wanted to buy tech because they were defensive — their growth wasn’t affected by uncertainty. But these days they get sold off. That’s because tech has done really well for people, so when uncertainty hits, people take profits. Again, that gives you a buying opportunity into companies whose earnings aren’t impacted by these global events.

"They will continue to grow.”

And with interest rates likely to start falling again, valuations, often the biggest concern for a tech company, start to look potentially shaky too.

“Valuation is always talked about, but if we’re entering a rate-cutting cycle, valuation won’t be a problem — provided the company can deliver earnings and exceed expectations.”

Know what you're buying, says Medallion MD

Over at Medallion Financial, Michael Wayne sees something similar — but with a caveat. Yes, there are opportunities. But you have to know which tech businesses have real staying power.

Take Megaport, for example:

“With Megaport, for the last four or five results — whether it’s half-year or full-year — it’s either been a 20% rally or a 20% decline on the day. But more recently, it does seem like momentum has come back into the business.”

Wayne’s been watching some of these companies for years. He sees them less as short-term buck-makers and more as long-term compounders.

“We’ve been looking at this company [Megaport] for over six years. We’ve had clients in at best entry points — it’s been a wonderful business, but it has had its moments.”

That same resilience shows up in other local tech names that keep delivering strong earnings:

“Technology One has had, what, over a decade now — at least, if not longer — of compound earnings and revenue growth consistently. It’s a company with a very sticky customer base. They just keep delivering.”

And when it comes to WiseTech Global, Wayne is just as confident in its long-term growth story:

“WiseTech Global is a good quality business underneath it all. They recently did another large-scale acquisition. We think it will continue to grow very quickly. And we like those compounding characteristics. Until there’s any evidence that’s changing, we don’t see any reason to turn away from the business.”

The current crisis

As markets nervously wait for loud noises from Iran, jitters have sent prices down ever so slightly throughout the week. That includes the tech stocks. But our experts are telling us that when others take value off the top during nervous periods, a window opens for new upside.

If you’re buying quality businesses with strong growth, sticky customers, and room to keep compounding, the pros will tell you: volatility isn’t a threat — it’s your entry point.

As Liu put it simply:

“You’ve got to buy future earnings, right? You’ve got to be optimistic to expect what’s to come.”

And for tech investors brave enough to lean into that optimism, these market dips might just be the chance they’re waiting for.

Watch this week's episode below.